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Exxon Mobil
The seven staircases are maximizing existing customers, attracting new customers, innovation of product and services, innovation of value delivery system, improving industry revenue, geographic expansion and stepping out into new business areas (Mckinsey, no date). Exxon Mobil has seen steep declines in its revenues in the past few years, falling from $438 billion in 2013 to $268 billion in 2015 (2015 Exxon Mobil Annual Report). This does not mean that the company has no growth strategy; Exxon Mobil's revenues are related to fluctuations in the price of hydrocarbons, especially crude. The company also notes that "global economic growth has slowed, leading to a market that is oversupplied" (p.2), citing this is a reason for lower revenues.
The company relies on attracting new customers. This may seem counterintuitive, but it's not. Existing customers already consume heroic amounts of fossil fuels, so there is little incremental gain there. Exxon invests in innovation, but this is not the key business driver for a couple of reasons. One is that innovation does not have a strong influence over the cyclicality of its industry. The other is that with its downstream chemical business and broad geographic scope, Exxon Mobil is fairly well-diversified for a petroleum company. As such, its growth is tied far more to broader trends in energy price and consumption than to anything else it does. It is not focused on new business areas, mainly because of the overwhelming size of its core business. There is no new business in which it could invest that would make a dent in its core businesses, which are worth hundreds of billions. Improving industry revenue...
The argument that Exxon Mobil makes is that the developing world still has a billion people without energy access. Pulling people out of poverty via energy access, even just for basic things like providing clean water and electricity, is something that helps the company to grow. A billion new customers may not match the four or five billion that the company has added since the end of the Second World War, but it is still the opportunity on which the company hangs its growth hat, at least according to the annual report.
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References
2015 Exxon Mobil Annual Report. Retrieved November 26, 2016 from http://cdn.exxonmobil.com/~/media/global/files/summary-annual-report/2015_Summary_Annual_Report.pdf
McKinsey & Co. (no date). Staircases to growth. Mckinsey & Co. In possession of the author.
Community and society are a couple of stakes in the above array of stakeholders that a business is obligated towards directly. Charity schools and hospitals would be a part of direct responsibility to these two stakes but only partly and not completely. Exxon has failed to realize its obligations to the society in which it exists and so issues became so intense that Exxon Mobil had to suspend its
Additionally the company is increasingly concerned with meeting the energy needs of people and organizations throughout the world ("Company Profile"). To this end Exxon Mobil is committed to "exploration and production of crude oil and natural gas; the manufacture of petroleum products; and the transportation and sale of crude oil, natural gas, and petroleum products ("Company Profile")." In addition Exxon Mobile is a primary producer and marketer of both commodity
These unwavering expectations provide the foundation for our commitments to those with whom we interact: " (JLP, 2005). Financial Goals ExxonMobil does not explicitly state its financial goals. This is proprietary information that is not published. However, ExxonMobil does suggest that it intends to keep up with global demand. ExxonMobil is focused on long-term growth, rather than short-term gains. One could expect the financial goals of the company to include a
Brief Summary of a Company: Exxon Mobil CorporationThe company selected for conducting financial analysis is Exxon Mobil, a multinational gas and oil company. The firm is based in the United States and has its headquarters in Irving, Texas. The method used to analyze Exxon Mobil�s financial health is financial ratios while considering the company�s operating efficiency, profitability, solvency, and liquidity (Reuben, 2018). These aspects provided a clear picture of its
Technology at Exxon Mobil Exxon Mobil is an American multinational corporation that operates in the oil and gas industry where it has developed to become the fifth largest business organization by revenue across the globe. The growth and profitability of this company since inception can be attributed to various factors including technology used for domestic and international business environments. Similar to most of the companies in this industry, Exxon Mobil utilizes
Sociocultural Aspect of Exxon Mobil The clustering of countries based on their cultural values has the ability to bring about an understanding of the differences and similarities across cultures. This would be beneficial to any company that is trading globally and would like to replicate the success of its domestic market globally. Exxon Mobil currently has six country clusters namely North America, South America, Europe, Middle East/North Africa, Sub-Saharan Africa, and